The ARK Space & Defense Innovation ETF (NYSEMKT:ARKX) provides more aggressive thematic exposure with higher volatility, whereas the First Trust Indxx Aerospace & Defense ETF (NYSEMKT:MISL) offers a lower-cost, passive approach to domestic aerospace. Investors looking to navigate the expanding aerospace and defense landscape often compare niche thematic funds against broader industry benchmarks. The choice between these two funds involves weighing an actively managed innovation focus against a passive index-tracking strategy, each of which responds differently to geopolitical shifts and technological breakthroughs.
Beta measures price volatility relative to the S&P 500; beta is calculated from monthly returns over the available fund history (up to five years). The 1-yr return represents total return over the trailing 12 months. Dividend yield is the trailing-12-month distribution yield.
The ARK Space & Defense Innovation ETF carries a higher price tag with a 0.75% expense ratio, which is characteristic of specialized, actively managed thematic funds. This makes the First Trust Indxx Aerospace & Defense ETF look more affordable for long-term investors with its 0.6% expense ratio. Growth of $1,000 over 3 years (total return) The ARK Space & Defense Innovation ETF focuses on companies leading in space exploration and orbital technologies.
Its portfolio tilts toward industrials at 63%, technology at 21%, and consumer cyclical at 9%. Largest positions include Space Exploration Technologies (NASDAQ:SPCX) at 9.05%, Kratos Defense & Security (NASDAQ:KTOS) at 7.36%, and L3Harris Technologies (NYSE:LHX) at 6.89%. The fund manages 45 holdings.
The fund launched in 2021. The First Trust Indxx Aerospace & Defense ETF tracks the Indxx US Aerospace & Defense Index, mirroring the performance of companies involved in military and commercial aviation. It concentrates more heavily on industrials at 80% and technology at 13%, with 5% in cash and other assets.
Top holdings include Palantir Technologies (NASDAQ:PLTR) at 10.01%, RTX (NYSE:RTX) at 8.43%, and The Boeing Company (NYSE:BA) at 7.72%. It currently holds 49 securities. The fund launched in 2022.
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